How Ripple Could Replace the Federal Reserve

Following Ripple’s achievements in the financial sector, XRP community member Ashley Prosper speculated that the company has the opportunity to become a viable competitor to replace the Federal Reserve.
Despite the bold speculation, the community figure outlined a 16-step strategic plan that could help Ripple achieve this milestone.
Prosper clarified that his comments did not mean that Ripple would replace the Federal Reserve. However, he believes that if there was a financial entity that needed to do this, Ripple could be one of the leading contenders based on these conditions.
First on the list of demands is legislative support. Prosper noted that the U.S. Congress would have to enact major regulatory reforms that would dismantle the Federal Reserve and create a single entity that could perform the functions of a central bank system.
The second step requires Ripple to obtain approval from multiple regulators, including the U.S. Securities and Exchange Commission and the Treasury Department. According to Prosper, several former SEC and Treasury officials currently serve on Ripple’s board of directors.
Monetary policy control is the third requirement in the plan. Prosper noted that Ripple must be able to control monetary policy, including inflation and interest rates, to become a leading contender to replace the Federal Reserve.
For the fourth request, the XRP community member suggested that Ripple integrate with the U.S. banking system to achieve this goal.
The fifth strategy requires Ripple to develop and maintain a robust financial infrastructure capable of processing large financial transactions.
Building trust and economic stability
Notably, strategies six and seven require Ripple to implement top-level cybersecurity measures to protect against potential threats and build trust among businesses and financial institutions.
Prosper said Ripple must demonstrate its ability to maintain economic stability and effectively respond to financial crises before it can potentially replace the Federal Reserve.
In addition, he suggested that Ripple has the potential to replace the U.S. central bank system by establishing a transparent and accountable governance structure.
For the tenth plan, Prosper said Ripple must coordinate and cooperate with other international financial organizations and central banks, including the International Monetary Fund and the World Bank, to ensure global economic stability.
Other strategic requirements
Currency issuance, lender of last resort, and expert engagement are important enablers that help Ripple achieve this goal. For the 14th recommendation, Prosper said that Ripple must conduct adequate research and continue to strengthen the U.S. financial system.
Furthermore, he suggested that Ripple should create a detailed transition plan that would allow it to take over the responsibilities of the Federal Reserve without causing domestic economic turmoil.
Finally, Ripple must develop an effective strategy that will allow it to communicate the benefits, changes, and processes to the public and the international community.
Although Ripple has made notable achievements in the financial sector, including developing effective fintech solutions and partnering with top financial institutions for cross-border payments, the prospect of replacing the Federal Reserve is highly speculative and the likelihood of realization is almost zero.
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